Many graphics and few important questions

The price pattern became a bit more clear in the last days. We still have, however, several possibilities.

First, let us look at this Elliott Waves count:


You see “???”, where the last “bloody sunday” drop stopped. We are still not sure how to interpret the last decline from 0.030. However, it is not always the last price action which is important. One has to reflect upon the previous pattern. And here we have some “good” news. What happened to ETHBTC before looks much more clear.

This decline “A-B-C” is so classic, that we really see no reason to doubt the labeling. Wave C is almost exactly 1.618 of A. All moves were swift, also the waves A and B are clear 5 waves moves. Exactly how it is supposed to be in a “zig-zag” correction.

The rise thereafter (also marked as A-B-C) isn’t that perfect, but still looks good. An alternative for this rise would be a triangle:MidTerm-2

We don’t like it that much, mostly because the wave D is too small and it stops too far away from the rising trending line in this triangle. It is still possible, but not very probable.

So, for the moment we stick in our mid-term count to the first picture.

Now, the 1 mln. ETH question is: how to mark the “???” wave ?

We basically consider two counts at the moment. The one, which we like a bit more because of the nice proportions:

Double zig-zag

And another one, where we like the way how the retraces always reached and stopped in the area of the wave 4 of the previous degree:

5 down, need a move up and another five down

In both cases it’s possible that ETHBTC will dip slightly below 0.01740 (the last low) and then will rise.

In a “double zig-zag” case to build the third and the last one zig-zag down.

In the second case to form the wave “b” of the a-b-c Flat (marked as “B”) and then finish this Elliott pattern with “c”. Then it should work its way in the final wave “C”, consisting of 5 waves.MidTerm-5

We don’t really have preferencies at the moment. The current sentiment is unfortunately also mixed. On one side the “hope” is still quite strong, people in forums keep telling each other about fundamentals and the bright future of Ethereum. So it doesn’t look like a bottom of the correction. At least not now. On the other side, there are quite a lot of traders too, who only talks about shorting ETH, no doubting at all that it can eventually go higher. Even though it can indeed go higher right now. So may be, if we would have to make a call, based solely on the sentiment (as the Elliott Waves pattern itself is still quite unclear), we would expect market first to rise to 0.023-0.024 and then dive again.

We will see more as we get more of the price action. If we see enough to draw a pattern, we will publish update tomorrow. Otherwise, bear with us or, better to say, accept the market current uncertainty and we will come back on Thursday.

Take care. Plan your trades, trade your plans.

The Elliott Wave Principle describes the behaviour of the financial markets. This Principle is build on the mass psychology swings from pessimism to optimism and back in a natural sequence. When these swings happen, the specific Elliott wave patterns in price movements are created and become visible. Each pattern has implications regarding the position of the market within its overall progression, past, present and future.
The purpose of our blog posts is to outline the progress of markets in terms of the Elliott Wave Principle.
While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will my posts make specific recommendations for any specific person, and at no time may a reader or viewer be justified in inferring that any such advice is intended.
Very important. Investing carries risk of losses. You should be aware of all the risks associated with investing/trading financial instruments. Information provided in this blog is expressed in good faith, but it is not guaranteed.
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Author: Ravno_108

Sentiment wave rider. Product creator. Yogi

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